Blackstone and La Caisse Invest 2.5 Billion CAD in Aeroplan

A consortium led by Blackstone and La Caisse is acquiring a 25% minority equity stake in Air Canada's Aeroplan loyalty program. The investment is valued at 2.5 billion Canadian dollars, establishing a total valuation of 10 billion Canadian dollars for the program. The investor group also includes PSP Investments and the British Columbia Investment Management Corporation.

Air Canada will retain 75% ownership and full operational control over the strategy and day-to-day management of Aeroplan. The airline plans to use the proceeds to repay a 1.2 billion US dollar bond maturity and accelerate share repurchases, including a proposed substantial issuer bid to purchase up to 800 million Canadian dollars in shares through a modified Dutch Auction.

Air Canada executives stated the transaction provides financial flexibility and supports the company's pursuit of an investment-grade rating. Settlement of the investment is expected on August 17, 2026.